Successful ERP Installs Begin with Questioning the Market

Has the ERP market matured?  Yes.  Is there still a need for ERP services? Yes. 

While many companies have been able to stabilize their environment, many firms had installs that weren't set-up in an ideal/best-practices manner.  These client's limp along performing processes, many times less efficiently than prior to installing their ERP system (i.e. cutting manual checks, ordering of POs that aren't linked to the system, not tracking ALL items in inventory, mismanaging employees comp time, etc).  Many of these clients could benefit from an optimization effort, or re-implementation, but see it to be a waste of money/time. 

Clients are live already on their current product, so why bother re-implementing?   To save time, money, and earn the ROI they had originally expected.

The bottom line is that the ERP services industry has been profitable.  This profitability has created a surge of providers who aren't client focused.  Instead they are focused on $$$$$ for their firms, not the client. Bigger, more well known, and more expensive doesn't always equate better. 

For Example:

The resource complement for a big firm's Implementation/Re-Implementation generally looks as follows:

• 1 Project Director
• 1 Project Manager Human Capital Management
• 1 Project Manager Financials
• 1 Project Manager Supply Chain
• 1 Functional Lead Human Capital Management
• 1 Functional Lead Financials
• 1 Functional Lead Supply Chain Management
• 2 Technical Leads (1 DBA, 1 Programmer)
• 2 Specialty Consultants (Talent Management, Grants Management, Installers etc)

Total: approx 11

vs

Smaller Firms:

• 1 Project Director/Manager
• 1 Functional Lead Human Capital Management
• 1 Functional Lead Financials
• 1 Functional Lead Supply Chain Management
• 2 Technical Leads (1 DBA, 1 Programmer)
• 1 Specialty Consultant (as/if needed)

Total: approx 5-6

Smaller firms utilize a resource complement of roughly half of what a big firm provides. Clients are sold on the idea that more hands on deck is a good thing, but what happens is that the consultants tend to do more of the work. Instead of having the clients internal staff learning and understanding the product throughout the installation process (which as allows for a smoother running system going forward, and less need for future consulting). 

When considering a re-implementation/optimization effort, remember that the more invested effort and buy-in on the client side is ideal.  This will allow for a greater probability of success going forward.